Retirement may soon be a word of the past

Think of it as the "R" word. Australia's trend to early retirement is slowly grinding to a halt.

Within 10 years, predicts Bernard Salt, a partner with accounting firm KPMG and author of The Big Shift, retirement will be a dirty word.

Driven by a desire for a more satisfying work/life balance, and a need to top up inadequate retirement savings, Australia's baby boomers are rethinking the dream of retiring in their 50s.

Many still want to opt out of traditional work, but the emphasis is increasingly on "refocusing" their lives rather than collecting a gold watch.

A recent survey of 50 to 64-year-olds in Britain found one in four had decided to retire later than they were planning two years ago. And the working lives of older Australians have been increasing. According to the Department of Employment and Workplace Relations, half those in the 55 to 64 age group are in the workforce (up from 42 per cent 20 years ago). The big increase has been in employment of older women. ");document.write("

advertisement

");
}
}
// -->

Diana Olsberg, director of the University of NSW Research Centre on Ageing and Retirement, said there was a growing transition period between full-time work and the onset of physical decline.

She said that while the trend was already starting to develop, it would become stronger as the baby boomers moved into the older age group in greater numbers. "The baby boomers are the generation that has changed social norms and work practices throughout their whole lives, and they will now change the concept of what it means to be old," she said.

Mr Salt said that while some older workers were looking for part-time or contract employment, others were chasing lifestyle options such as new careers or businesses, often outside the cities. He said the "sea change" phenomenon was now being followed by a "hill change" phenomenon, with people moving to rural areas.

"We're seeing the trend to them opening up businesses like B&Bs," he said. "Also, the sheer volume of people pushing into these places creates job opportunities."